Well I just got back from the Apple store. I purchased a 500GB WD My Book to use with Time Machine for hourly back ups and it seems to be working just fine (in the time it took me to write this post it has already backed up 1GB of data).

However the point of my post is for my other purchase, VMWare Fusion. Don't get it if you want to play games. I can't even play Counter Strike Condition Zero with it. Its great for being a virtual machine and using it for applications such as IE, Word, etc. However if you want to play games, you'll need to find another solution. I'm going to try Bootcamp next, I here that works well with games. I will be returning VMWare to the store soon.